17 Mar 2009 03:03:12
Green focus 'needed in Budget'
Investment should be targeted at low carbon industries as part of Chancellor Alistair Darling's upcoming Budget, according to the Environmental Audit Committee (EAC).
The group of cross-party MPs has said that support for the green sector will help to boost job creation during the downturn.
In an analysis of how the recession will impact the UK's move towards becoming a low carbon economy, the EAC revealed that tax increases may be needed to support the projects earmarked for funding in November's pre-Budget report.
Some £535 million was allocated to the green sector by Mr Darling, although the EAC suggests that this figure was taken from future projects, which means that further funding will be needed to ensure plans to stimulate the economy take carbon reduction in to consideration.
Tim Yeo, chairman of the committee, said: "The Treasury has announced very little new money for green investments.
"Yet meeting our climate change targets will require a step-change in funding for the low carbon energy sector, especially when the financial crisis has led to a shortage of capital."http://www.parliament.uk/eacom/